Victorian Consolidated Legislation

Fair Trading Act 1999 - SECT 32GA

Transfer of limited interest in goods

32GA. Transfer of limited interest in goods



(1) Section 32G does not apply to a contract of supply of goods if-

   (a)  it appears from the contract, or is to be inferred from the
        circumstances of the supply, that the supplier intends to transfer
        only such right, title or interest as the supplier or a third party
        may have; and

   (b)  the purchaser is aware when the contract is made that it is a contract
        under which the supplier intends to transfer only such right, title or
        interest as the supplier or a third party may have.

(2) In a contract of supply of goods referred to in subsection (1) there is-

   (a)  an implied condition that-

   (i)  in the case of a contract, not being an agreement to supply, the
        supplier has a right to transfer that right, title or interest in the
        goods; and

   (ii) in the case of an agreement to supply, the supplier will have a right
        to transfer that right, title or interest in the goods at the time
        when the property is to pass; and

   (b)  an implied condition that, when the property is to pass, there will be
        no other right, title or interest in the goods of which, when the
        contract is made, the supplier is aware but the purchaser is not
        aware; and





   (c)  an implied condition that at the time the property in the goods is to
        pass the goods will be free from any charge or encumbrance other than
        a charge or encumbrance subject to which the purchaser has agreed to
        accept the goods; and

   (d)  an implied warranty that the purchaser's quiet possession of the goods
        will not be disturbed by-

   (i)  the supplier; or

   (ii) if the parties to the contract intend that the supplier should
        transfer only such right, title or interest as a third person may
        have-that third person; or

   (iii) anyone claiming through or under the supplier or that third person
        otherwise than under a charge or encumbrance subject to which the
        purchaser has agreed to accept the goods.

(3) This section does not apply to a contract of supply of goods by way of
lease.